China Cracks Down Upon Tencent, Other Tech Giants Over Algo Abuse; Questions Alibaba, Others To Address Job Cuts

China looks to rein in the potential abuse of algorithms by internet giants from ByteDance Ltd to Tencent Holdings Ltd TCEHY, Bloomberg reports.
The Cyberspace Administration of China looks to inspect how social media platforms serve up ads and content to hook users, especially the large-scale websites, platforms, and products with significant influence.
China aims to implement the new rules governing the industry's use of algorithms to forbid online addiction and any activity endangering national security by China's most influential corporations.
Also Read: Tencent Caught In Regulatory Turmoil Like Jack Ma's Ant Group, Another Analyst Cuts Price Target On Alibaba
The watchdog interviewed representatives from companies including Tencent, Alibaba Group Holding Ltd BABA, Meituan MPNGF, and JD.com Inc JD to address job cuts totaling 216,800 from July to mid-March.
The companies hired 295,900 people over the same period, a net increase.
Tencent doled out over $200 million apiece to two unidentified executives in 2021 while slashing founder Pony Ma's compensation for a year in which Beijing's crackdown sent Tencent's stock down by 19%.
Investors, which wiped out over $1 trillion of Chinese tech stock value at the height of the crackdown, remain cautious in 2022.
Companies including ByteDance and Tencent tweaked their products following the crackdown to protect personal privacy.
After Tencent decided to shut down its game streaming service, the Chinese tech stocks went jittery.
Price Action: BABA shares traded lower by 0.21% at $104.05 premarket on the last check Friday.